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London (AFP) – Bitcoin fell to an 18-month low of less than $ 25,000 on Monday as investors avoided risky assets amid tense global markets.
Investors flocked to the dollar as a safe haven for stock markets around the world, with Onda analyst Jeffrey Haley saying “cryptocurrency is likely to fall the most sharply in the world.”
The most popular digital currency was about $ 24,580, down about 10% at about 0840 GMT, down more than 65% compared to the highest levels recorded by Bitcoin in November 2021 and its lowest level in December 2020.
When the cryptocurrency market peaked at more than $ 3 trillion seven months ago, it is approaching $ 1 trillion, according to Coingecko, which tracks 13,000 different cryptocurrencies.
By 2021, this still new sector has attracted emerging traditional finance investors, whose hunger for risk has been opened up by the extreme relaxation policies of central banks around the world.
But the rise in interest rates on the dollar, which the US Federal Reserve has decided to prevent further inflation, has hurt markets.
In addition, according to UBS analyst Mark Heffley, the decline in Bitcoin was accelerated “after the Celsius Pause Withdrawal”.
The $ 12 billion company recommends its users to use “historic” cryptocurrencies such as Bitcoin and Ether, especially to invest in new cryptocurrencies.
In October, Celsius raised $ 400 million from the Quebec Depository Fund, expressing satisfaction with its partnership with “the world’s leading cryptocurrency lender”.
“Due to severe market conditions, we will suspend withdrawals and transactions between accounts,” the platform announced on Monday.
Neil Wilson, an analyst at Markets.com, says, “There is a decline in crypto space, and it is getting worse.
In early May, the cryptocurrency terra, which was supposed to be linked to the dollar, plummeted, sparking fears among investors.
© 2022 AFP
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